Family nonexecutive directors, professional managers, and investment in family firms

Abstract

This study empirically analyzes the relationship between family nonexecutive directors and family business investment. It is found that family nonexecutive directors can significantly inhibit listed family firms’ capital expenditure and innovation investment. Furthermore, firms effectively introducing professional managers inhibit or mitigate the impact of family nonexecutive directors on the firm's capital expenditure and innovation investment, and a change in general manager has no moderating effect on the relationship between family nonexecutive directors and the firm's capital expenditure and innovation investment.